Letter: Government skews the free market on labor costs

The labor market is perhaps the most socially important of our free markets. Here our employers must raise and lower wages not only to meet their competition, but also to account for the ever-changing size, skills and desires of the workforce.

The employers' search for profit causes our nation to maximize employment, productivity and economic competitiveness. What's funny is that when labor is in oversupply everyone wants to blame the capitalists, when the real cause is usually the government or nature. In our case, for example, government labor unions and the destruction of free-market conditions mean that our fire department provides about half the employment and service that it should. Hence, when we hear there are 100 people with compensation averaging $45 per hour ($90,000 including all benefits), we should ask: why not $40 per hour, and 25 new hires at $20 per hour?

The irony is that almost all government and utility workers are in this $45 per hour average grouping. While they no doubt like their jobs, it's unfortunate they can't realize that: government spending or regulations put them outside of the free-labor market; they could be competently replaced at two-thirds the cost, and their overcompensation is the reason there are no jobs or services for the homeless.

If money really did grow on trees, our dismal economists wouldn't worry about the injustice and inequality that ultimately flow when bullies or politicians use mandates or spending to thwart those free-markets that protect us from other peoples' ignorance and greed.